From The Motley Fool · Ben Gran · · 1m
S&P 500 Drop: Buy the Dip or Wait?
Long-term S&P 500 investing beats short-term timing for most investors.
In brief
Long-term S&P 500 investing beats short-term timing for most investors. For patient investors, buying stocks during market dips rarely beats steady long-term investing in the S&P 500. Originally reported by The Motley Fool.
S&P 500 Drop
The S&P 500 index has declined by about 2.5% since reaching a record high on Oct. 6.
Buying the Dip
Some investors see a 2.5% drop as a sign to buy more shares of s&p 500 exchange-traded funds.
Long-Term Returns
The S&P 500 has delivered average annual returns of 9.98% since 1928 with 15.3% returns in the past decade.
Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (VOO) has delivered 14.94% annualized returns over 16 years.
Time in Market
Research shows steady investing beats trying to time the market for better returns.
What to Do
Focus on long-term plans: buy and hold diversified stocks without worrying about short-term dips.
The one thing
For patient investors, buying stocks during market dips rarely beats steady long-term investing in the S&P 500.
